Lets talk first about Employee Retention Credit Contingent Fee :
Our team here what do these men doing everyone in this space is helping teach people about ERC and uh constantly offer a beautiful breakfast and have individuals really discover the program we need to head to the space where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I suggest you understand if you just begin to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I indicate think of how many real customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
get this you understand the check is chosen sure which’s when they pay so they don’t pay anything up until they in fact get the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the procedure has actually been completed and how many you believe you’ve processed since you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require you require experts on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re speaking about something really important today the staff member retention credit which the majority of you have actually never become aware of I certainly hadn’t heard of it until really just recently and found out a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank supervisor and state offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund fine go on sorry I simply need to ensure we got that point I imply that’s a huge difference a loan versus money cash I like money cash that’s what we’re discussing okay and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the original cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that individual had to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned a company however it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be eligible so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the chaos of the pandemic so they wished to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the big concern is why does nobody learn about this because appearance when I first found out about this when I initially fulfilled Josh you understand I have actually got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous many financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not think it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them carefully to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my politician good friends Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one know about the worker retention credit you know what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was mayhem since keep in mind in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not truly he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge big business clients have actually worked with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose business is fully or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether a company had, on average, basically than.
100 staff members in 2019.
Business that specialize in ERC filing support generally supply proficiency and support to assist services navigate the complicated procedure of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Contingent Fee
Eligibility Evaluation: These business will assess your business’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can declare, they can assist figure out.
Paperwork and Estimation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit quantity based on eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can assist you change previous tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the necessary forms and documents on your behalf. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These business stay updated with the latest changes and ensure that your filings abide by the most existing guidelines. They can also supply ongoing assistance if the internal revenue service requests extra details or conducts an audit related to your ERC claim.
It is necessary to research study and veterinarian any business offering ERC filing assistance to ensure their credibility and proficiency. Look for established companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who offer ERC filing assistance.
Keep in mind that while these business can supply important assistance, it’s always a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage organizations to keep and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, companies need to satisfy one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (up to 70%) of qualified wages paid to staff members, including certain health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they got a PPP loan. Nevertheless, the very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, permitting eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be refunded to the company if the credit goes beyond the amount of work taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have evolved gradually. The best strategy is to speak with a tax expert or visit the main internal revenue service site for the most detailed and up-to-date information concerning the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a company needs to fulfill one of the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC involves finishing the essential forms and consisting of the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can differ based on several elements, including the intricacy of your business and the workload of the internal revenue service. It’s recommended to talk to a tax expert for assistance particular to your scenario.
There are several business that can help with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some well-known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and contact these companies directly to inquire about their charges and services.
Please note that the info provided here is based on basic understanding and might not show the most recent updates or changes to the ERC. It is necessary to seek advice from a tax expert or visit the official IRS website for the most precise and up-to-date information relating to eligibility, claiming procedures, and available support.
Less than 100. If the employer had 100 or less employees usually in 2019, then the credit is based.
on incomes paid to all workers whether they in fact worked or not. In other words, even if the.
employees worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
enabled just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a part of the cost of employer.
provided healthcare. Employee Retention Credit Contingent Fee
Payment.
Companies can be right away compensated for the credit by minimizing the quantity of payroll taxes they.